Smt. Nirmala Sitharaman- Minister of Finance and Corporate Affairs moves the Companies (Amendment) Bill, 2019 for consideration in the Rajya Sabha.

She replies to the debate on Companies (Amendment) Bill, 2019 in the Rajya Sabha.

Gandhiji’s trusteeship principle is with which profit-making can not be devoid of social responsibility. The amendments we are bringing now are only to sharp focus that and make it far more effective.

Here is a Companies Act that is undergoing major changes. We are trying to bring in ease of doing business, bringing in a robust framework through which the Companies Act can be implemented.

We are declogging the NCLT by shifting of routine matters out of that. We are also trying to rationalise and recategorise minor offences for civil defaults..

Now it has become mandatory that companies do have a physical address. Physical register is to be maintained so that people can go and check them and there is a veracity of their claims.

Breach of ceiling on directorship is being made a ground for disqualification. For instance, if the numbers are crossed for holding the directorship beyond the permissible limit, it will bring in disqualification.

Even before you start the function, it is necessary for the company to declare before commencement of business.

Companies will now have to explain where they have spent the CSR money. We are giving a three years window after which they will have to move the CSR money in an escrow account if they don’t spend it.

Section 135 is being amended to provide for a specific penal provision in case of non-compliance of CSR.

We are strengthening the enforcement provisions that enable the SFIO to ensure speedy and more effective enforcement, including actions of disgorgement.

Source- Twitter Handle of Office of Smt. Nirmala Sitharaman- Minister of Finance and Corporate Affairs.

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June 2021